ISIL reformulate the Islamic Jurisprudence and tailor it to fit its needs: The concept of interest that is forbidden in Islam, ISIL legitimizes it.

ISIL reformulate the Islamic Jurisprudence and tailor it to fit its needs: The concept of interest that is forbidden in Islam, ISIL legitimizes it.

A new financing source and a new method for ISIL to collect money that we came to uncover in Mosul. And here is how they do it:

After the collapse of the stock market of Mosul and the collapse of the Iraqi currency, specifically the smaller grade, like the 250 dinars banknotes, and since the Iraqi government is paying its employees’ salary using this particular banknote, the circulation of this banknote has become very limited and a new exchange rates for the $100 into the Iraqi 250 dinar banknote is in place and it is different than the exchange rate for the other larger Iraqi banknotes, including the 1000 dinar banknote. The exchange rate for the $100 into the 250 dinar banknotes is 170 thousands, and the same $100 is exchanged for 150 thousands if the exchange banknotes were of the one thousand dinar banknotes.

And the exchange from the 250 dinar banknotes into US Dollars is 100 thousands dinars for $100, where of the higher value banknotes (like 1000 dinar banknotes), 110 thousands dinars for $100.

Usually ISIL receives those Iraqi banknotes through the banks it is controlling in Mosul, specifically Alrashid Bank, which is known as Bank 112 located on Almalik Ghazi street at Bab Altoob, where it exchanges massive amounts of money and gets the difference in exchange rate. It is a new trade that ISIL earns plenty of money through it.

The other method is in changing the smaller banknotes (like the 250 and 1000 dinars) into larger banknotes (like 5000, 10000 and 25000 dinars). This is how the change is done:

No less than one million Iraqi dinar is permitted to be changed, and for every one million dinars in the 250 dinar form, the beneficiary must pay %15 of the entire amount to change it into the 50 thousands dinar banknotes.

For every one million Iraqi dinars on the 1000 dinar banknotes, the beneficiary must pay %20 of the entire amount to change it into the 10 thousands dinars banknotes. And to change one million dinars of the 250 dinar banknotes, the beneficiary must pay %25 of the entire amount to change it into the 25 thousands dinar banknotes.

In case of changing larger amounts, 100 millions and more, the change rate is discounted from %25 to %14.

ISIL operates the banks every day from 7:00 AM till 4:00 PM to perform the change transactions among different Iraqi currency banknotes and administering exchange transactions with foreign currency, specially the US Dollar. ISIL also buys the Iraqi currency in massive amounts from the citizens of Mosul.

How does ISIL spend all this money?

There are many ways for ISIL to spend all this money:

1- recirculate the same banknotes (250 and 1000 banknotes) into the market through paying its fighters and employees salaries and the salaries of the medical staff in hospitals, schools and their affiliated institutions periodically the exchange them over and over.

2- export massive amounts of the small grade banknotes (250 and 1000 dinar) to Turkey through Syria, then import them into Kurdistan and pump it back into the Iraqi market in most of the Iraqi provinces. This way, ISIL returns this money to the Iraqi market, benefiting from trading it into larger grade of the Iraqi currency and foreign currencies.

3- ISIL imposes upon Iraqi oil traders to pay either in US dollars or larger grade Iraqi dinar banknotes (5000, 10000 and 25000 dinars). This way ISIL maintains its supply of the Iraqi large grade currency, and in order for local exchange traders to make their trades with smaller grade banknotes, they need to buy the larger grade banknotes to buy oil from ISIL again.

4- exchange and money transaction operators that are operating in Mosul, and have branches and affiliations with other companies in Baghdad, Kurdistan and neighboring countries.

5- It is possible that ISIL has other channels that are not affiliated with it, where they facilitate money transactions for ISIL, and that is under “trading business and importing and exporting goods” from and to Mosul, then it venues to the benefit of ISIL at the end.

And this way, ISIL is investing the Iraqi currency to acquire the larger grade Iraqi banknotes and US dollars as it is circulating the very same currency through several channels administered by the owners of exchange agencies and operating Iraqi banks in both Baghdad and Kurdistan.